Bank Of America Launching A Mobile Payment Service
Jack Dorsey, the co-founder of Twitter, is known for starting a mobile payment called Square. The Square payment reader became very mainstream and is used everywhere including Starbucks. Now Bank of America is getting into the mobile payment game with the introduction of the Mobile Pay on Demand service. The Mobile Pay on Demand lets small business owners accept payments over a mobile phone.
“I hate to come out with a commodity product, but every bank should have one,” stated Bank of America EVP of Strategy and Emerging Products Trevor Rubel.
Bank of America’s mobile card reader will be available starting on December 3rd and will be priced competitively. The card reader will be free and payments will cost 2.7% per swiped transaction. The mobile application will be available on iOS and Android free.
The Bank of America mobile card reader costs slightly lower than Square’s 2.75%, but it is a bit higher than Groupon’s 1.8% plus 15 cents fee. Bank of America’s mobile card reader will not have monthly or annual fees.
Bank of America is a strong and trusted brand and it has substantial relationships with retailers. Some of the best perks of the service is next-day access to funds and customer service representatives being available by phone. Retailers will be the merchant of record so that the name of the business will appear on the consumer’s credit card statement instead of Bank of America.
If those incentives have not persuaded you to use the Bank of America mobile card reader, then maybe this will. Bank of America is giving a one-year subscription to their deals marketing platform. This service costs around $200 and it lets businesses create a website, distribute Groupon-like coupons / loyalty programs, and sends out offers across social media websites like Facebook and Twitter.